📊 S&P Global (NYSE:SPGI) delivered an extraordinary Q3 performance, showcasing its market strength with a 16% revenue surge to $3.575 billion. The Ratings division excelled, growing revenue by 35.5%—a result of an astonishing 76% rise in billed issuance volumes. Earnings per share (EPS) hit $3.89, smashing forecasts of $3.64. This exceptional quarter prompted management to increase the 2024 revenue growth forecast to 11.5–12.5%, up from the prior 8–10% guidance.
📈 SPGI’s non-rating segments, which now make up 70% of its revenue, demonstrated their strength. The Indices unit grew an impressive 17.5% as equity markets and passive investment flows drove demand for index-linked products. Commodity Insights capitalized on rising energy-transition investments, while Market Intelligence (MI) faced challenges but showed potential for recovery.
🤖 Innovation remains a central theme for SPGI. This quarter, the company introduced AI-powered tools to enhance client insights and streamline operations, including generative AI transcript searches. Synergies from the IHS Markit merger—already delivering $249 million in annualized revenue—further highlight SPGI’s efficiency and forward-looking strategies.
📌 Looking ahead, SPGI is well-positioned for sustained growth. A healthy refinancing pipeline for 2025 and lower borrowing costs, driven by expected rate cuts, are likely to boost debt issuance demand. With nearly 49% adjusted EBIT margins and strong performance across segments, SPGI continues to capitalize on opportunities while driving financial discipline.
💡 SPGI combines innovation, market leadership, and robust financials to define the future of global markets. For investors, it presents a compelling case for sustainable long-term growth, backed by strategic execution and a resilient business model.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.